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India oil refiners squeezed by anti-Russia push from US and EU
India’s oil refiners have been thrown into disarray after President Donald Trump cited their purchases of Russian crude as a reason for imposing hefty 25% import tariffs on all goods from the Asian nation.
The processors, who have become heavily dependent on cut-price Russian energy over the past few years, were already dealing with a proposed European Union ban on their exports of diesel made from Russian oil. With Washington now also taking an increasingly hard line against the Kremlin, a scramble for alternative sources of crude is turning into a frenzy.
A senior executive at a major Indian oil refiner said the company would try to source more crude from the Middle East and Africa, while also looking to the government for guidance on how it should proceed. The situation was not entirely unexpected, but would increase costs and reduce margins, said the executive, who asked not to be named due to the sensitivity of the matter.
India is heavily dependent on imported energy, and more than a third of its overseas purchases of crude come from Russia. Along with China, it has become the most important buyer of Moscow’s oil, with many of its refiners coming to rely on the discounted shipments.
Earlier this month, the country’s crude processors were hit by the EU’s intention to ban imports of diesel made in the country from Russian oil, with Nayara Energy Ltd. specifically targeted with penalties. The processors are now finding themselves under even more pressure from Washington.
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